114 BMW Group Report 2024 To Our Stakeholders Combined Management Report Group Financial Statements Responsibility Statement and Auditor’s Report Remuneration Report Other Information Sustainability Statement electric vehicles), reputation (indicator: Corporate Reputation In- dex), adaptability (indicators: Sustainability index and spending on employee training and development) and attractiveness as an employer (indicator: placement in rankings). Also taken into ac- count are leadership performance (indicator: assessment of management performance) and the achievement of diversity tar- gets (indicator: diversity targets), as well as preventive activities in ensuring compliance (indicator: actions taken to strengthen compliance). In terms of the share-based remuneration, the Su- pervisory Board adopts strategic focus targets each year. Some or all of these may be related to sustainability matters. Strategic focus targets for the reporting year were the reduction of carbon fleet emissions (EU) and sales of all-electric vehicles (BEV). The remuneration system stipulates that at least 50% of the per- formance component of the bonus is dependent on sustainabil- ity-related matters. In relation to the total variable target remu- neration, the proportion is around 12%. Depending on the spe- cific annual targets for the individual departmental targets of the performance component of the bonus and for the strategic focus targets of the long-term variable remuneration component, the proportion of the variable target remuneration that is dependent on sustainability-related aspects can be as high as around 41% of the variable target remuneration. The Supervisory Board is responsible for defining and reviewing the remuneration system of the Board of Management and for determining the individual remuneration of the members of the Board of Management. It submits the remuneration system to the Annual General Meeting for approval in the event of signifi- cant changes, but at least every four years. The Supervisory Board adopted the current remuneration sys- tem for the members of the Board of Management for financial years starting on or after 1 January 2021 and submitted it to the Annual General Meeting for approval. The Annual General Meet- ing approved it on 12 May 2021 with a majority of 91.60% of the valid votes cast. The Supervisory Board set climate-related targets for the varia- ble remuneration of the Board of Management in the 2024 fi- nancial year. These were related to the reduction of GHG emissions. Target achievement levels were determined after the end of the financial year. The climate-related targets for the per- formance component of the bonus were the performance crite- rion “environmental innovation performance” based on the indi- cator of the proportion of electrified and all-electric vehicles sold. The targets for the long-term variable remuneration were tied to the reduction of carbon fleet emissions in the EU and global sales of all-electric vehicles (BEV). Climate-related remuneration accounted for around 17-18% of the total remuneration granted and owed for the 2024 financial year. Supervisory Board The regulation governing remuneration for the Supervisory Board is set out in § 16 of the Articles of Incorporation of BMW AG, and specifies both the remuneration system to be used and the precise framework for calculating the remuneration due to the members of the Supervisory Board. To ensure that the Supervisory Board monitors and advises the Board of Management as an independent body, the remunera- tion of the Supervisory Board is structured as fixed remuneration plus an attendance fee and is not dependent on sustainability matters. The remuneration of the Supervisory Board is determined by the Annual General Meeting. The regulation currently in effect was confirmed by the Annual General Meeting on 12 May 2021 with a majority of 99.40% of the valid votes cast. INTERNAL CONTROL SYSTEM FOR SUSTAINABILITY REPORTING The BMW Group’s Internal Control System (ICS) covers, among other things, risks and controls relating to sustainability report- ing. A general description of the ICS, including the aspects of the system related to sustainability reporting, is provided in » Internal Control System.